General elections were held in Nigeria on 21 October 1938. The Nigerian Youth Movement (NYM) won three of the four elected seats in the Legislative Council, defeating the Nigerian National Democratic Party (NNDP), which had won every election since 1923.

The 1922 Nigeria (Legislative Council) Order in Council provided for a 46-member Legislative Council, of which 23 were ex-officio officials, four were nominated officials, up to 15 were appointed unofficial members and four were elected (three in Lagos and one in Calabar).^[1][2] The 23 ex officio officials included the Governor, the Chief Secretary and their deputy, the Lieutenant Governors and secretaries of the Northern and Southern Provinces, the Attorney General, the Commandant of the Nigerian Regiment, the Director of Medical Services, the Treasurer, the Director of Marine, the Comptroller of Customs, the Secretary of Native Affairs, together with ten senior residents.^[3]

The franchise was restricted to men aged 21 or over who were British subjects or a native of Nigeria who had lived in their municipal area for the 12 months prior to the election, and who earned at least £100 in the previous calendar year. The right to vote was withheld from those who had been convicted of a crime and sentenced to death, hard labour or prison for more than a year, or were of "unsound mind".^[4] Only 908 people registered to vote in Lagos out of a population of over 126,000, whilst just 107 registered in Calabar (the population of the town was 16,653 according to the 1931 census).^[5]

All eligible voters could also run as candidates unless they had an undischarged bankruptcy, had received charitable relief in the previous five years or were a public servant.^[6] Candidates were required to obtain the nomination of at least three registered voters and pay a £10 deposit.^[4] The term of the council was five years.^[7]

Six candidates contested the three Lagos seats, three from the NNDP and three from the NYM. Two of the NNDP candidates (Crispin Adeniyi-Jones and Eric Moore) were sitting Council members, whilst Ayo Williams ran as a joined NNDP and Nigerian Union of Young Democrats candidate, replacing former NNDP legislator T. A. Doherty. The NYM nominated Kofo Abayomi, Olayinka Alakija and H. S. A. Thomas.

In Calabar the independent Okon Efiong was the only candidate, and was elected unopposed.^[8]

The next full Legislative Council elections were not held until 1947 due to World War II. By-elections were held to replace members in 1940 and 1941, before partial elections were held in 1943. Two additional African members were appointed in 1942 representing Ondo (M C Adeniyi) and British Cameroons (J M Williams).^[10]